"National
understands there'll be property cycles but the recent cycle
has been so extreme as to suggest there are fundamental
problems with how the market is operating, notably around
the supply of land"

"The research proves that many
first home buyers are excluded from entering the property
market by a number of factors, including restrictive zoning
and consent laws, which not only make life difficult for
ordinary Kiwis, but are major factors in New Zealand's poor
productivity and economic growth levels."

"I am
pleased to say the Government will be introducing
initiatives aimed at improving housing
affordability."

Mr Heatley then stated that along with
reforms to the Resource Management Act and the Building Act,
the focus will be on -

* Ensuring Councils plan for
forward supply of suitable land.

* Making redevelopment
easier.

* Delivering sustainable resourcing for the non
Government housing sector.

* Work with Councils to remove
planning restrictions for housing provision on Maori
communal land.

Prior to the recent general election
November 8, 2008, the National Party while in opposition,
had initiated Parliaments Commerce Committee Housing
Affordability Inquiry under the Chairmanship of Hon Gerry
Brownlee and its Housing Spokesman Hon Phil Heatley
completed an extensive United Kingdom and United States
Housing Study Tour.

The
international standard for housing affordability, is that
housing should not cost any more than three times gross
household income (the Median Multiple).

New Zealands
residential construction has slumped from its peak in mid
2004 when in excess of 30,000 residential units were built
to less than 14,000 units per annum, with just 1.168 units consented for November 2008
- simply because Local Government is currently "not
allowing" affordable new housing to be built.

The recently
released 2009 5th Edition Demographia Survey
found that of the 265 major urban markets surveyed the
average Median Multiple for Australia was Australia 6.0; New
Zealand 5.7; Ireland 5.4; United Kingdom 5.2; Canada 3.5 and
the United States 3.2.

Governments that allowed these
housing bubbles to get underway and failed to deal
effectively with the real structural issues in New Zealand
and Australia have "paid the price" with voters, as the
Fitch Ratings research found (refer Fear of losing homes drove Labor win -
National - smh.com.au), following the 2007 Australian
Federal election.

Commenting at the time - Associate
Professor of Economics at the University of Western Sydney,
Steve Keen, said household debt had become a pressing issue
since the 2004 election, with total debts as a proportion of
disposable income increasing from 128 percent to 160 per
cent.

Tim Gattrell, National Secretary of the Australian
Labour Party, noted that the new Australian Government had
made significant inroads among home loan borrowers -
particularly those above the average repayment.

"The
new National led Coalition Government, with its Housing
Minister Hon Phil Heatley, is to be applauded for providing
the leadership, to restore prosperity and affordable
housing" said Hugh Pavletich, co author of the Annual
Demographia Survey, adding "It's now the responsibility
all New Zealanders, to work constructively together, to
ensure this
happens".

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